Queensland councils have welcomed the Abbott Government’s move to consult widely before responding to a Productivity Commission proposal to drastically slash natural disaster recovery funding.
Justice Minister Michael Keenan has released the Commission’s final report into natural disaster funding arrangements which urges that the federal share of funding assistance for clean up and recovery be reduced from 75 percent of the total to 50 percent.
However he committed to consulting with state and local governments before committing to any changes and promised there would no ‘radical reductions’ in funding support.
Local Government Association of Queensland President Margaret de Wit welcomed the pledge, saying any move to accept the Commission’s recommendations would amount to a massive cost-shift on to councils.
“We hope the Government has heeded our warnings about the devastating financial impact of what the Productivity Commission is urging.
“If the federal government had cut its funding support to 50 percent before the spate of natural disasters Queensland has suffered since 2009, there would have been a shortfall in recovery money of about $1.3 billion.
“We look forward to the Government talking to us so that we can ensure all of the facts about the future of disaster funding are on the table.”
